"Accounting for a Loss Contingency" Do the provisions of SAB 92 allow the company to reflect...

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Accounting

"Accounting for a Loss Contingency"
Do the provisions of SAB 92 allow the company to reflect thetrue impact of the loss?
What changes would you recommend to SAB 92?
Please provide a rationale for your responses.

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4.4 Ratings (878 Votes)

In 1993 the SEC published Staff Accounting Bulletin No 92 Topic 5Y Accounting and Disclosures Relating to Loss Contingencies SAB 92 SAB 92 is an interpretation of generally accepted accounting principles GAAP with regard to contingent environmental liabilities and was intended to promote the timely recognition of contingent losses and to address the diversity in practice with respect to the accounting for and disclosure of contingent liabilities Under SAB 92 contingent environmental losses must be accrued by a charge to income if it is probable that a liability has been incurred and See Answer

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